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Reserve Bank of India will focus on Interest Rate Hikes

Published on June 02, 2022
Current Context: Reserve Bank of India will focus on interest rate hikes in the coming months with the repo rate expected to reach its terminal level early in 2023.
Reserve Bank of India will focus on Interest Rate Hikes
  • According to a Reuters poll. the central bank is expected to hike its benchmark policy rate by at least 100 basis points during the next four MPC meetings.
  • Monetary Policy Committee has backed even more in upcoming sessions this year to keep price pressures under control which reached an eight-year high in May.
  • It has also been estimated that the repo rate is likely to reach or exceed its pre-pandemic level of 5.15 percent next quarter.
  • Many economists estimated that inflation was to remain in the 6%-7% range well into the current and next fiscal year.
  • As inflation is also expected to remain high due to high global energy and food costs still RBI doesn’t achieve the target of inflation and needs to take a decision on it and also what to do about interest rates.


Q.1 According to a Reuters poll, the benchmark policy rate will increase at least by _______ basis points?
a. 120 basis points
b. 100 basis points
c. 80 basis points
d. 50 basis points
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